Finance Report for year ended 30 June 2013
Prepared by Philip Currie, Treasurer and Ruth McGorman-Mann, Director, Finance and Administration
The members of the Finance, Audit & Risk Committee during the 2012/13 year were
- Philip Currie (Chair) Adventist HealthCare
- Henry Barclay, Cura Day Hospitals
- Craig McNally, Ramsay Health Care
- Moira Munro, The Perth Clinic
- Amanda Quealy, The Hobart Clinic
- George Toemoe, PHA NSW
The APHA financial result for the year ended 30 June 2013 was a deficit of $46,353 (2012: deficit of $62,992). This result was $191,520 better than budgeted.
The result for the year reflected a 12.6% increase in the APHA membership base and continued expenditure on strategic initiatives. The result for the year before the Strategic Initiatives was a surplus of $213,963.
Revenue for 2012/13 totalled $1,967,481. Along with an increase in membership revenue there was also an increased surplus from the annual APHA Conference in 2013. Sponsorship revenue has remained stable compared with last year. Revenue from interest income has declined as a result of lower interest rates offered on cash reserves and demand for Associate memberships, information services and National Procedure Banding information has seen revenue fall in these areas. The table below shows the composition of APHA revenue for the financial year.
Total revenue has increased substantially in the past two years as a result of the increase in Hospital members. Sponsorship income has remained stable while revenue from Associate members, APHA information services, National Procedure Banding information and interest on term deposits has declined.
Expenditure during 2012/13 totalled $2,013,834 which includes $260,316 for Strategic Initiatives. Employee costs remain the largest component of expenditure. All items of expenditure are carefully monitored by the Finance, Audit & Risk Committee and Secretariat.
The five year comparsion of expenditure highlights the impact of the strategic initiatives in the total expended each year. The focusing of funds to progress the Boards planned strategic goals peaked in 2009/10 and is expected to reduce in future years. Other expenses in 2012/13 includes an unbudgeted provision for doubtful debts, an upgrade to the APHA website, political liaison in the lead up to the 2013 Federal election and consulting expenditure recorded on behalf APHA SA branch.
The Balance Sheet shows the Association to be in a sound financial position. Assets include cash reserves (held in term deposits) and the Secretariat office in Canberra. These are significantly higher than the liabilities held at balance date and contribute to the strong net asset position. The Balance Sheet at the 30 June 2013 shows members’ funds of $2,321,044 (2012: $2,367,397).
The auditors, Duesburys Nexia has issued an unqualified audit report for the year ended 30 June 2013. They advise that the financial statements present a true and fair view of the financial position of the Association at 30 June 2013 and its performance for the year and that they complied with Australian Accounting Standards and Corporations Law.